This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Oversold Stocks Ready for a Bounce Higher

TTWO Chart TTWO data by YCharts

Take-Two Interactive Software (TTWO).
Take-Two Interactive Software is a leading worldwide developer, publisher and distributor of interactive software games. Take-Two Interactive trades an average of 2.4 million shares per day with a marketcap of $884 million.

52 Week Range: $8.89 to $16.27
Book Value: $6.60
Price to Book: 1.38

Ten (over 70%) out of 14 analysts rate TTWO a "buy" or strong buy. The company has four "holds," and none of the analysts give a sell rating. Shareholders have not been rewarded for their patience, shares have fallen 30.7% in the last year, and the average analyst target price for TTWO is $18.19.

Take-Two is anticipated to report weak earnings after the market closes on July 31. The consensus estimate is currently a loss of 78 cents a share, a decline of 71 cents from a loss of 7 cents during the same period last year.

The mean fiscal year estimate price-to-earnings ratio is 5.08, based on earnings of $1.81 per share this year. In the last month the stock has fallen -10.07%. Shares are below the 200-day moving average and the moving averages place Take-Two in a strikingly bearish trend.

For the same fiscal period year-over-year, revenue has declined to $1.14 billion last fiscal year compared to $1.16 billion in the previous year. The bottom line has rising earnings year-over-year of $48.45 million last fiscal year compared to $-122.99 million in the previous year.

Short interest is very high at 17.44% and may provide the fuel for a massive short squeeze if Take-Two can deliver during earnings.

Take-Two is oversold on the weekly and daily charts and is due for a technical bounce. The best way I have found for playing oversold stocks is to write put options. Writing put options lowers positional risk and compensates for both time and favorable directional movements.

I like the August $9 put this week during the next few days for 50 cents or greater. My profit target is 40 cents or close out on option expiration date.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,139.48 -33.20 -0.19%
S&P 500 1,994.12 -0.17 -0.01%
NASDAQ 4,533.1750 +5.4860 0.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs